SoMo reported an increase in income and turnover in its newest monetary yr, because it scales up its workforce to “lay the foundations for future development”.
The bridging lender stated that pre-tax revenue elevated to £6.4m for the yr to 31 March 2022, up from £4.8m the earlier yr.
Turnover rose to £18.9m from £12.9m, in accordance with paperwork filed with Corporations Home.
SoMo elevated its headcount to 53 in its 2021/2022 monetary yr, up from 39 beforehand. This included 10 new hires within the IT division. Employees pay rose to £2.57m from £1.75m consequently.
Learn extra: Bridging the hole: Unique interview with SoMo’s Simon Cottrell
“The corporate has achieved year-on-year will increase in turnover and funds lent since inception,” SoMo stated in its strategic report.
“Headcount has elevated considerably as we lay the foundations for future development.”
95 per cent of SoMo’s mortgage e book is secured bridging finance – funded by buyers and lenders – and the opposite 5 per cent includes client credit score loans, that are funded by inside capital and reserves.
Bridging loans made up £15.3m of revenues within the yr to 31 March 2022, with the e book standing at £64m at year-end.
This compares to £3.6m of revenues from its client credit score e book, which stood at £3.2m.
SoMo highlighted the truth that bridging finance is “naturally uncovered to volatilities within the property market” as a principal threat and uncertainty however famous that “lending is brief time period and threat is managed with cautious loan-to-value lending standards”.
It stated that its client credit score lending is predicated on affordability.
Wanting forward, SoMo is seeking to increase each elements of the enterprise.
“Expertise continues to be on the coronary heart of the enterprise and an in-house crew has developed innovative applied sciences to ship monetary fee and mortgage providers,” the agency stated.
“Modern options are enhancing and increasing each the core bridging platform and client credit score know-how and this may proceed to be a spotlight.”
Final December, SoMo introduced that 2022 was its most profitable yr to this point. It stated on the time that it was planning to launch a private and enterprise insolvency and chapter product this yr, which can be serviced by in-house insolvency specialists.
Since then, it has introduced plenty of record-breaking months in 2023, boosted by origination-focused promotions.
Learn extra: Somo studies greatest month ever in February